Government & Laws Canada’s Indo-Pacific Strategy

The North Pacific

The North Pacific is Canada’s neighbourhood, and one of the approaches to the Canadian Arctic. Canada is part of this important region in the Indo-Pacific and can count on long-standing and deepening relationships with Japan and the Republic of Korea, as does the United States. With the world’s third-largest economy, Japan is Canada’s only G7 partner in the region. It is one of Canada’s most important commercial partners and Canada’s largest source of bilateral Foreign Direct Investment (FDI) in Asia. Canada and Japan are the two largest economies in the CPTPP.

The Republic of Korea is Canada’s seventh-largest merchandise export market, and an increasingly important source of FDI into Canada. Two-way trade continues to grow, facilitated by the Canada-Korea Free Trade Agreement.

The North Pacific faces growing security challenges, notably from North Korea, as its increasingly frequent and reckless testing of missiles demonstrates. Since the Korean War, when 516 Canadians made the ultimate sacrifice, Canada has never left the Korean Peninsula; rather, it has continuously served, through the UN Command, in support of peace on the peninsula. Today, that includes sustained and persistent deployments of Canadian Armed Forces planes and frigates that monitor activities that are in violation of UN sanctions, and which are aimed to deter nuclear proliferation.

As more goods move from Canada to the Indo-Pacific markets, maritime security and the enforcement of the rule of law are becoming increasingly critical. Canada will build upon existing activities—such as countering illegal, unreported and unregulated fishing through Operation North Pacific Guard—to deepen our cooperation with Japan and the Republic of Korea in this region.

Beyond Canada’s long-standing and steadfast security commitments on and around the Korean Peninsula, Canada has much to offer these democratic partners. Emerging security challenges and supply chain disruptions highlight the need to collaborate on enhancing economic security. Areas of collaboration include opportunities in artificial intelligence, cyber security, energy infrastructure and energy export, critical minerals and electric vehicle battery supply chains, agriculture and agri-food and trade corridor infrastructure.

As part of its Indo-Pacific Strategy, Canada will:

• open new opportunities for security cooperation, including through the negotiation of a General Security of Information Agreement with Japan and, in the future, with the Republic of Korea
• strengthen critical minerals, hydrogen and clean energy sources, positioning Canada as a responsible and reliable energy security partner, by engaging on new opportunities presented by Japan and the Republic of Korea’s increased demand
• work to support and strengthen stability on the Korean Peninsula and, more generally, in the Indo-Pacific

Japan is Canada’s only G7 partner in the Indo-Pacific, where we work closely together on trade as the two leading economies in the CPTPP, on regional development through the Asian Development Bank and on security through bilateral and multilateral operations and exercises. Shared values and interests are the foundation of our broader partnership on global challenges and on strengthening the rules-based international order. Canada will:

• implement the Six Shared Priorities, as agreed to with Japan in 2021, including rule of law, security, global health, energy, trade and climate
• work together with Japan toward sustainable energy and free trade and to address climate change and environmental protection
• conclude the negotiations with Japan for a General Security of Information Agreement between the two countries and help support both defence procurement and broader national security objectives
• work closely with Japan as it undertakes the G7 presidency in 2023 to support its work as it shapes its priorities
• participate in the 2025 World Expo to be held in Osaka, Japan, to showcase Canadian innovation, resources, investment and education to Japan and the broader Indo-Pacific region

The Republic of Korea is a strong democratic partner with which we share bilateral and global strategic interests. Canada and the Republic of Korea are tightly connected through long-standing trade and cultural ties and a history of mutual support. Canada will:

• advance the Comprehensive Strategic Partnership agreed to with the Republic of Korea in September 2022
• launch a high-level Dialogue on Economic Security as part of our Comprehensive Strategic Partnership with the Republic of Korea
• work together with the Republic of Korea in support of resilient supply chains, the supply of critical minerals and high labour conditions and environmental protections, including the transition to clean energy
• support the Republic of Korea’s efforts to achieve a denuclearized, peaceful and prosperous Korean Peninsula
• establish a new annual Canada–Republic of Korea climate change dialogue

Strategic objectives and initiatives

1. Promoting peace, resilience and security

Stability in the Indo-Pacific is essential to global stability. The region is home to numerous security hotspots with potential global repercussions, and Canada must engage as a regional security partner to protect our national interests and security. Canada’s actions are guided by an unwavering commitment to the safety and security of Canadians.

At present, Canadian Armed Forces members contribute to regional stability through stand-alone and multinational operations, such as supporting the implementation of UN sanctions imposed against North Korea through Operation NEON. Canada also contributes to upholding the international law of the sea including the UN convention through forward naval presence operations in the waters of the Indo-Pacific.

China’s rapid and dramatic modernization of the People’s Liberation Army, including its offensive technological capabilities and geographic reach, has caught the region’s attention. As China becomes more assertive and grows in influence, Canada is stepping up as a reliable partner in the region to promote security and stability across the region and at home.

Canada will increase our military engagement and intelligence capacity as a means of mitigating coercive behaviour and threats to regional security.

Working with partners in the region, Canada will increase its security-based engagement in the Indo-Pacific. Canada will deploy additional military assets and increase its investments in border and cyber security, as well as in intelligence. Canada will continue to build cooperative relationships with customs and law enforcement agencies across the region. Working with regional partners, Canada will help strengthen regional defence architectures and deepen our long-standing commitments to women, peace, and security. And Canada will work with our partners in the Indo-Pacific to make our societies more resilient and less vulnerable to the disruptions and shocks that can damage the fabric of our societies. Canada’s Defence Policy Update will support Canada’s Indo-Pacific Strategy and its implementation.

Like countries around the world, Canada is concerned by the rise of coercive and irresponsible use of technology. The spread of disinformation, ransomware and other cyber security threats directly affect Canadians, working to destabilize our democracy and our economy. Canada will take a leadership role in combatting these threats, investing in expertise and technology to better protect all Canadians.

Canada will work hand-in-hand with ASEAN and its member states to ensure full respect for international law, including the United Nations Convention on the Law of the Sea, in the South China Sea. Canada will work with allies to boost awareness of the region and enhance resilience and preparedness, as well as to protect against coercive tactics and the theft of sensitive data, technology and intellectual property from our companies and research organizations. The impact of climate change on security amplifies the need to work with regional partners to improve resilience to climate-related disasters. Canada’s military will work with its counterparts and share best practices to improve climate-related disaster resilience.

As an Arctic nation, Canada is conscious that powers in the Indo-Pacific region are looking to the Arctic as a region of opportunity. Canada is committed to maintaining the peace and stability of the region and the safety, health and resilience of Canadian Northern populations and Indigenous Peoples. At a time of accelerating impact of climate change and rising geopolitical competition, Canada will advance its standing as an Arctic power and uphold our Arctic sovereignty and the rules-based international order in our bilateral and multilateral engagement with Indo-Pacific countries on Arctic and polar affairs. We will do so responsibly and sustainably, together with partners.

Canada’s initiatives aimed at promoting peace, resilience and security in the Indo-Pacific will:

• make meaningful contributions to the region’s security and defence and enhance our defence and security relationships with regional partners and allies
• bolster Canada’s long-standing collaboration with, and contribution to, the Five Eyes
• enhance defence cooperation with ASEAN and North Pacific partners
• continue our long-standing contributions to defence cooperation in the Indo-Pacific, including by supporting the implementation of UN Security Council sanctions against North Korea through participation in current operations, such as Operation NEON, and working side-by-side with our partners to uphold regional security and advocate for North Korea’s denuclearization

Through investment in military operations, training and capacity building, Canada will:

• enhance our security and defence contribution by committing additional resources to the region and increase engagement in international exercises and operations
• augment its naval presence, including by increasing the number of frigates deployed on to the region where it will conduct forward naval presence operations, uphold international law of the sea including the UN convention, and conduct collaborative deployments with its allies and partners
• expand existing military capacity building initiatives and launch new training programs that advance joint priorities and interoperability with regional partners, such as Indonesia, Malaysia, the Philippines, Singapore and Vietnam, including in the area of Women, Peace and Security

Through investment in intelligence and cyber security, Canada will:

• ensure Canada’s national security and law enforcement agencies, including the Canadian Security Intelligence Service, the Communications Security Establishment, the Canada Border Services Agency and the Royal Canadian Mounted Police, are appropriately tasked and resourced to support the objectives outlined in the strategy and work in a coordinated fashion to enhance Canada’s public safety and the security of Canadians
• increase resources devoted to protecting Canadians from attempts by foreign states to influence them covertly or coercively
• bolster Canada’s capacity to collect, develop and provide timely intelligence, analysis and assessment to meet national security needs and provide foresight analysis and early warning against threats, such as foreign interference, hostile activities by state actors and economic-based national security threats emanating from the region
• build capacity in the region by dedicating new funding for cooperation, including on borders and law enforcement, cyber-crime, anti-money laundering and counter-terrorism financing
• detect and respond to increasing cyber security threats originating in the region, including malicious activity targeting businesses, industry and infrastructure, and threats to democracy posed by online disinformation campaigns and surveillance technology, including online attacks targeting civil society and human rights defenders

Through investment in science and research, Canada will:

• continue to detect and mitigate risks to protect Canadian post secondary institutions from malign actors who seek to exploit our open society
• increase investment to protect Canada’s innovation and knowledge economy from intellectual property theft

2. Expanding trade, investment and supply chain resilience

Canada is a trading nation. To grow the economy, create good jobs, and keep our competitive advantage, Canada must continue to expand into new export markets and create partnerships abroad. Canada’s Indo-Pacific Strategy will position Canada for long-term growth and prosperity that benefit all Canadians by enhancing and diversifying our economic relationships with key Indo-Pacific economies.

The Indo-Pacific is the world’s fastest-growing economic region, and its importance will only continue to expand over time. In a world increasingly shaped by tensions, trade is not only an economic but, also, a geopolitical priority. It is also uniquely vulnerable to supply chain disruptions emerging from the region, as demonstrated during the pandemic. In this context, Canada’s economic network needs to be resilient. Canada’s business sector needs to be able to mitigate risk. To do so, diversification is a priority.

We are also witnessing competition to define the rules for trade and technology in the region and for the world. In this context, Canada will work hard to promote rules-based trade in the region, expand trade and digital partnerships and enhance innovation and research. Canada will also increase funding to support inclusive economic growth and start new partnerships to promote trade and develop technologies.

This will support good jobs in Canada and ensure we are meeting the needs of countries in the Indo-Pacific. It is in our national interest to expand trade and investments and to reinforce supply chain resilience.

Emerging patterns of protectionism and economic coercion are of significant concern to Canada. Canada is committed to a trade system that is stable and inclusive, and which creates economic prosperity for everyone. To better position Canada to respond to new geopolitical shocks and bilateral trade barriers, Canada will strengthen our supply chains through new and existing trade and investment agreements; investments in domestic infrastructure that increase trade flows and facilitate stronger business-to-business relationships. Canada will increase its engagement in regard to the shaping of international standards and norms, particularly in the technology sector. This, in turn, will create new opportunities for Canadian businesses and ensure a strong economy for years and decades to come.

To expand Canada’s trade network at home and abroad, Canada will:

• launch a Canadian Trade Gateway in Southeast Asia to expand Canada’s business and investment engagement, and networks in the region; the gateway will focus on sectors and solutions where Canadian innovation responds to regional demand and will enhance Canada’s profile as a commercial and investment partner, creating opportunities for Canadian exporters and attracting foreign investment to Canada
• appoint a new Canadian Indo-Pacific Trade Representative to advance Canada’s regional trade policy, promotion, and economic cooperation objectives in the region
• launch a new series of large-scale Team Canada trade missions that involve Canadian businesses, provinces and territories and other relevant partners and organizations; Canada will showcase the capabilities and competitiveness of its exporters and innovators to ensure their success in the region and facilitate long-term trade and investment opportunities
• provide greater support for Canadian small and medium-sized enterprises, innovators and national industry associations pursuing new trade and investment opportunities in the Indo-Pacific through an enhanced and tailored CanExport program
• support the economic empowerment of Indigenous Peoples through the implementation of the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA) in cooperation with existing partners—Australia, New Zealand and Taiwan—and Indigenous Peoples from those participating economies
• provide enhanced support to women entrepreneurs to maximize opportunities in the Indo-Pacific region by expanding international partnerships through the Women Entrepreneurship Strategy
• open our first Agriculture and Agri-Food Office in the region to help Canadian farmers and producers to diversify their exports and position Canada as a preferred supplier in key emerging markets
• expand the regional mandate of Canada’s development finance institution, FinDev Canada, to the Indo-Pacific. Canada’s commitment to the G7 Partnership for Global Infrastructure and Investment will be done in an approach that looks to amplify, leverage and collaborate with Canadian private sector and institutions, like pension funds should they choose to, on needed small to medium infrastructure projects across the region. This will support high-quality, sustainable infrastructure, and also provides alternative options to developing economies exploring infrastructure development

To enhance rules-based trade that provides predictability for economies and exporters, Canada will:

• ensure the Trade Commissioner Service provides expert advice on China’s market while promoting export diversification across the region
• strengthen Canadian economic security in reinforcing the Investment Canada Act to defend our national interests, oversee stronger enforcement and add more precautions to protect intellectual property and Canadian research
• continue to work with like-minded partners in the region to counter economic coercion and non-market practices
• work with partners to develop digital infrastructure, promote interoperability and promote coherent regulations affecting the Internet, the digital economy and trust and security in the use of information and communications technology; this will enhance cooperation on standards, norms and regulations that will benefit Canada, the Indo-Pacific region and rules-based trade
• provide greater technical assistance to Indo-Pacific trading partners to improve the enforcement of labour provisions, including on forced labour, in current and future free trade agreements with Canada; this will help protect workers’ rights, ensure companies are respecting human rights in their supply chains and contribute to levelling the playing field for Canadian workers and employers

To ensure the resilience of supply chains, Canada will:

• continue to make significant investments in domestic transportation infrastructure projects through the National Trade Corridors Fund, such as investments in the ports of Vancouver and Prince Rupert, for major upgrades to Canada’s marine, port, airport, road and rail infrastructure, increasing national trading capacity, fluidity and efficiency
• advance shared interests in supply chain resilience with partners, including through greater Canadian involvement and alignment with regional initiatives, such as the Australia-Japan-India Supply Chain Resilience Initiative
• contribute to global supply chain resilience and sustainability by engaging in technical, policy and high-level cooperation through APEC on standards, conformity assessment procedure and best practices to enhance trade
• position Canada to be a reliable supplier of clean energy in the region—and in a net-zero-emissions economy—including critical minerals and hydrogen, to fight climate change, be an energy security partner and support global climate goals
• expand natural resource ties—related to trade, investment and science, technology and innovation—with priority Indo-Pacific partners
• strengthen Canada’s Science, Technology and Innovation partnerships with key economies, including Japan, the Republic of Korea, India, Singapore and Taiwan, to support international co-innovation projects and commercialization-oriented research and development partnerships for Canadian small and medium-sized businesses with Indo-Pacific partners

To increase export diversification and free trade access, Canada will:

• work with partners to strengthen and expand the CPTPP and ensure that any form of expansion will be based on high standards and track records
• seek to join and meaningfully contribute to the newly established Indo-Pacific Economic Framework for Prosperity
• improve market access through new comprehensive free trade agreements, such as those currently being negotiated with ASEAN, India and Indonesia, and on new or modernized Foreign Investment Promotion and Protection Agreements
• join the Digital Economic Partnership Agreement with Singapore, New Zealand and Chile while securing a cultural-industries exception for the Canadian cultural sector

3. Investing in and connecting people

Canada is deeply connected to the Indo-Pacific region through people. Almost 20% of new Canadians come from the region, close to 18% of Canadians have family ties to the region and 60% of the international students coming to Canada hail from the Indo-Pacific. Students come to study in Canada and often stay to work, to contribute and to join Canadian society. Those who return home forever carry with them the knowledge and experiences gained in Canada.

Indigenous Peoples from across Canada have established ties with Indigenous communities and organizations across the Indo-Pacific on issues as diverse as trade, oceans protections and Indigenous rights. Canada will support Indigenous leaders as they grow and deepen networks in the region across many areas of collaboration.

Investing in ties between Canadians and people from the region lies at the heart of Canada’s Indo-Pacific Strategy. For example, Canada will improve its visa-processing capacity to make it easier for families and students to visit. Canada will also continue its investment in cultural diplomacy so that people in the region and Canadians have more opportunities to experience the rich art forms and traditions that inform each country.

Canada is a steadfast partner and is well positioned to provide assistance that is transparent and responds to partner needs through the Feminist International Assistance Policy. Our approach leads to strong partnerships with Indo-Pacific countries and also builds our understanding and expertise. Canada is expanding our feminist international assistance and will continue to defend human rights through partnerships with Canadian civil society and partners in the region.

To strengthen people-to-people exchanges, Canada will:

• bolster visa-processing capacities in key locations in the region to ease access for students and family members; this initiative will enhance visa-processing capacity within Canada’s centralized network, as well as abroad in New Delhi and Chandigarh, India; Islamabad, Pakistan; and Manila, Philippines; these new resources will support ongoing efforts to accommodate the high volume of temporary resident visa applications (including visas, study permits and work permits) from the region
• facilitate travel to and from the region to strengthen people-to-people ties and bolster tourism by using different tools, such as the new and modernized Air Transport Agreements, and explore options to further facilitate travel, making travel to Canada easier, faster and safer for everyone
• leverage its reputation as a top education destination by launching over 1,000 scholarship and fellowship opportunities for Canadian students and for students from ASEAN countries
• strengthen Canada’s international student program with permanent residence and job opportunities for students from the Indo-Pacific that could lead to staying in Canada to contribute to Canada’s future; these investments will attract highly skilled workers to Canada to meet the needs of our economy today and into the future
• ensure that under the Indo-Pacific Regional Engagement Initiative, a broad range of Canadian sector leaders, subject-matter experts, academics and civil society groups will be able to build new networks in the Indo-Pacific, strengthen the Canadian voice on priority issues and create partnerships on behalf of Canada
• invite over 200 Canadian experts to go to the region to support countries that seek to partner with Canada in tackling challenges where Canada has expertise, such as in governance, energy transition and oceans management
• foster greater inclusion of Canadian diaspora communities of Indo-Pacific heritage through expanded cultural initiatives
• fight against anti-Asian racism in Canada, in all its forms, through the full implementation of the federal Anti-Racism Strategy
• pursue the path of reconciliation with First Nations, Inuit and Métis Peoples through enhanced Indigenous exchanges with regional partners, such as Australia, New Zealand and Taiwan; support education and skills development for Indigenous youth; continue the implementation of the IPETCA; and support the implementation of the UN Declaration on the Rights of Indigenous Peoples
• support francophone immigration objectives by expanding our diversification efforts in Cambodia, Laos and Vietnam—home to 1.3 million French speakers

To strengthen our international assistance, Canada will:

• deepen partnerships in the region by increasing feminist international assistance programming based on partner needs; Canada will help to protect the most vulnerable populations and support work to achieve the Sustainable Development Goals
• support efforts toward democracy, inclusivity, accountable governance and sustained economic growth, helping key countries in the region
• work with development partners in the region to reduce inequality and contribute to their economic prosperity
• continue to provide critical humanitarian assistance, especially in times of crisis, such as the recent floods in Pakistan
• establish our first international assistance program for the Pacific Islands region, supported by our membership in, and support for, the Partners in the Blue Pacific
• support Canadian civil society organizations through targeted initiatives that will enable them to pursue human-rights and gender-equality projects in the Indo-Pacific and bolster partnerships with their regional counterparts
• help build demining capacity by establishing standards for landmine clearance and accelerate mine-clearing by sharing expertise to support personnel, especially women, engaged in demining activities in Laos and Cambodia

To defend and enforce human rights, Canada will:

• strengthen dedicated Canadian funding and advocacy to support human rights across the Indo-Pacific, including for women and girls, religious minorities, 2SLGBTQI+ persons and persons with disabilities
• leverage Canada’s leadership in multilateral institutions to support regional action on human rights
• work to counter forms of arbitrary detention by hosting a summit on arbitrary detention in 2023
• fully implement the next phase of Canada’s Rohingya Strategy
• support peacebuilding in Sri Lanka and Myanmar and encourage truth seeking and accountability for alleged violations of human rights and humanitarian law during the civil conflict in Sri Lanka